da vita randy larson presentation 070110

Randy Larson | Director, HRIS

The Role of Innovative Analytics in Recruiting Turnaround

©2009 DaVita Inc. All rights reserved. Proprietary and confidential. For internal use only. 2

Today’s Objectives

Innovate: Give you at least one idea you can

use/adapt for YOUR organization

Enlighten: Inspire BOLD thought about your

Talent Analytics


Agenda

• Introduction

•Before & After

•Recruiting Results

•How Did We Do This?

•Business Impact

•The Future

•Key Takeaways

•Q & A

DaVita Introduction


About DaVita

• DaVita: “He/She Gives Life”

• Unique culture: We are a “Village”

• Special Language- “Mayor”, not CEO- “GSD” = Getting Stuff Done- “Teammate”, not employee

• We have a Company Song!

• Largest independent provider of kidney dialysis services in the U.S.

• Best outcomes (our patients live longer)

• Goal: to be the greatest kidney dialysis company the world has ever seen!


A HealthCare Services Leader

•116,000 patients in 43 states

•1,500 Clinics Nation-wide


Fortune 500 Company with Strong Growth

Talent Activity:Careers site receives 1.2M visits every year

10,000 jobs filled per year25% internal mobility

15% rehire rate

0

10,000

20,000

30,000

40,000

2005 2006 2007 2008 2009 2010

Teammate Growth

Fortune 500 RankToda

y355

2005685

Before and After


Recruiting in the Past

Before (2006):

• COO: “Recruiting is broken…”

• Metrics used sporadically

• No accountability to metrics

• Avg. Time to Fill for RNs >60 Days

• Ranked as bottom 5 department (out of 70)

• High RN Vacancy Rate (9-10%)


Recruiting Today

Today:

• COO: “Recruiting is broken…”

• Metrics used sporadically

• No accountability to metrics

• Avg. Time to Fill RNs >60 days

• Ranked as bottom 5 department (out of 75)

• High RN Vacancy Rate (9-10%)

a “Rising Star”

department…

consistently

Shared

~37 days

top 15

Low (4-5%)


Team Recognition

People Services Recruiting Team

2 ERE Recruiting Excellence Awards

2009: Top Recruiting Department / Function of the Year

2010: Best Corporate Careers Website

2 Taleo Innovation AwardsSatisfaction Surveys: Innovative use of

TechnologyScorecards: Innovative use of Analytics

Competitive Advantage

Recruiting Results


Reduced RN Vacancy Rate by >50%


RN Time to Fill at Industry-Leading Levels

RN Time to Fill (Days)

37

45

53

63

0

10

20

30

40

50

60

70

2006 2007 2008 2009


Hiring Managers’ Satisfaction with Recruiting Function

How Did We Do This?


The Road to Change

• Leadership Team

• Implemented Taleo!

• Built Analytics Function

• Held Recruiters Accountable

• Focused on Innovative Metrics

• Aligned with Operations


Bold Accountability Model: Driving Behaviors and Performance

Business Performance- Result of Behavior- Business Outcomes

Text

Text

Bold Goals- Establish Unique,

Business-Specific Measures

- Forced-Rank Scorecard- Shoot for “stretch” goals

Text

Recruiter Behaviors- Identify Strong / Weak- Manage Up or Out


Recruiter Scorecard


Recruiter Scorecard Drives Behaviors

• Production:

- 42% more fills per recruiter per month

• Service:

- Consistently averaging a 4.5 – 4.75 rating out of 5 for both hiring manager and candidate satisfaction

• Sourcing:

- Focus on Time to Find metric reduces overall cycle time by 1 week for each of the past two years

• RN Vacancy:

- Reduced by >50%


Innovative Analytics Drive Accountability

• New Hire and Hiring Manager Satisfaction Surveys- Automatically sent out by Taleo each time a hire is made and

recruiter is scored on a 1 to 5 scale

• 24 Hour Recruiter Response- Tracking of recruiter response time on new candidates

• 48 Hour Manager Response- Tracking of manager response time to recruiters on new

resumes

• Time to Find vs. Time to Fill- Focuses on recruiter impact by measuring the time to find the

candidate that we eventually hire

- Different from time to fill which is a measure of the entire process


“Time to Find” - A Unique Metric

Definition: The time it takes for the recruiter to send the candidate who is eventually hired to the hiring

manager

Time to Find

Requisition Approved

Recruiter Sends Candidate to HM

Candidate is Hired

Overall “Time to Fill”

~3 Weeks ~5 Weeks


Openly Sharing Results (Good and Bad) With Operations Builds Credibility

Business Impact


Cycle Time Matters!

RN Time to Fill (Days)

37

45

53

63

0

10

20

30

40

50

60

70

2006 2007 2008 2009

So, what does an annual cycle time reduction of 8 days actually mean to our

business?


Overtime / Contractor Avoidance

Backfill Options for 8 Days of RN Labor…

Hires:2,200

Salary:$1,700

StandardTeammate

Total Cost:$3.7M

$1.6MMore

Hires:2,200

Salary:$2,400

Over-Time Total Cost:$5.3M

$3.6MMore

Hires:2,200

Salary:$3,300

Contractor (Travel RN)

Total Cost:$7.3M

*Using generalized healthcare pay rate estimates - 8 days of RN pay, adjusted for hours in work week


Providing Operating Capacity

Staffing RNs Faster Helps Build Patient Capacity

2008: 45 Days to Fill 2009: 37 Days to Fill

Vacant Days: 99,000 Vacant Days: 81,000

More Treatments andBetter Patient Care

Vacant Days Avoided:18,000

Future


Future of DaVita Talent Analytics

Functional & User Experience• A suite of web-based reports, easily accessible through an Intranet

web page, allowing easy access by all DaVita teammates• Visual stories based on interactive graphs• Increase “open auditing” of HR function• “What If” predictive analytics, preparing us to influence outcomes• Contextually-based metric widgets at the fingertips of system users• Benchmark with other similar Healthcare organizations

Integrations & Automation• Single source of data for full talent lifecycle• Entire HR Scorecard in a centralized location• Retention analytics to identify top recruiting behaviors• Finance analytics tied to Talent analytics• Automation / interfacing between HRIS, LMS, Recruiting and Social /

Alumni networks

Key Takeaways


Key Takeaways

• Be BOLD- Set “stretch” goals

• Take Accountability- Constantly measure your team / function

• Align with Operations- Get the “seat at the table”

• Innovate- Can you take any of these ideas home?

da vita randy larson presentation 070110

Education

rn time

overall time

time tofindmetric

time tofillwhich

hiring manager time

overall cycle time

cycle time matters

recruiting function